9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1961 (12) TMI 66 - HC - VAT and Sales Tax
Issues:
Challenge to the validity of the proviso under section 3(4) of the Mysore Sales Tax Act, 1948 regarding delegation of power to the State Government to vary rules in schedule II. Analysis: The petitioner contested the taxation of sales of groundnut seeds and oil under the Mysore Sales Tax Act, 1948, citing the proviso under section 3(4) as invalid. The Act initially taxed purchases of groundnut seeds and sales of groundnut oil, later evolving to tax all sales of groundnut seeds and oil. The petitioner argued that the State Government exceeded its authority by amending schedule II through the proviso, claiming it conferred unguided power. The crux of the matter was the delegation of rule-making power to vary the schedule, which the petitioner deemed impermissible. The court examined the delegation of legislative power under the Act, emphasizing that while essential legislative functions are non-delegable, subsidiary details can be delegated if the legislative policy is clear. In this case, the legislative policy was to tax a dealer's turnover, with schedule II outlining turnover determination rules. The State Government's authority to vary these rules for turnover determination was upheld as a permissible delegation of detail-oriented power. The court dismissed the contention that varying rules in schedule II involved an essential legislative function, asserting it was a matter of detail not necessitating direct legislative action. In conclusion, the court upheld the validity of the proviso under section 3(4) of the Mysore Sales Tax Act, 1948, allowing the State Government to modify rules in schedule II for turnover determination. The judgment clarified that such delegation of detail-oriented power does not infringe upon essential legislative functions, provided the legislative policy is clear. The petitioner's challenge regarding the delegation of power was dismissed, affirming the State Government's authority to amend schedule II rules within the scope of the Act.
|
